Insurance companies dominated the Dhaka Stock Exchange's turnover chart on Tuesday as seven out of top 10 most traded stocks belong to insurance sector.
Most of the insurance stock prices also kept soaring on the trading boards in the past two months due to high investor participation fuelled by rumours that the chairman of the Bangladesh Securities and Exchange Commission (BSEC) was involved with the insurance sector and therefore wishes to see it flourish in the capital market.
The investors mostly focused on general insurance companies shares. Following pharmaceuticals, insurance stocks have been traded the highest on the boards since July.
Market operators said hope for income rise for insurers due to lower commission rate guideline as directed by the Insurance Development and Regulatory Authority (IDRA) coupled with the stock market regulator's ultimatum on ensuring mandatory shareholding rules might had a positive impact on the insurance stock prices.
As per the BSEC information, 41 listed companies have not yet complied with the directive of holding minimum 30 per cent shares by their directors jointly.
Continental Insurance topped the DSE turnover chart followed by Express Insurance, Beximco, BD Finance, Pioneer Insurance, Sandhani Life Insurance, Rupali Insurance, Purabi General Insurance, Paramount Textile and Northern Islami Insurance.
According to available data with the DSE, some 7.41 million shares of the Continental Insurance were traded, generating a turnover of Tk355 million, which was 3.32 per cent of the day's total turnover.
Express Insurance came second on the turnover chart, with shares worth Tk297 million changing hands. The company's share price fell 3.88 per cent to close at Tk34.60 each on Tuesday.
Beximco clinched the third spot, with shares worth Tk263 million changing hands. The company's share closed at Tk 24.80, losing 1.19 per cent over the previous day.
BD Finance emerged as the fourth, with shares worth Tk252 million changing hands. The non-bank financial institution's share jumped 7.39 per cent to close at Tk27.60 each.
Pioneer Insurance notched the fifth spot, with shares worth Tk237 million changing hands. The insurer's share closed at Tk70.60, gaining 3.06 per cent over the previous day.
The turnover of Sandhani Life Insurance was Tk 222 million. The life insurer's share price fell 3.45 per cent to close at Tk 33.60 each.
Republic Insurance featured a turnover of Tk221 million. The company's share fell 5.35 per cent to close at Tk31.80 each.
The turnover of Purabi General Insurance was Tk210 million. The company's share rose 3.37 per cent to close at Tk27.60 each.
Paramount Textile featured a turnover of Tk209 million. The company's share closed at Tk68.90, gaining 6.82 per cent.
Northern Islami Insurance also made its way to the day's top turnover chart, with shares worth Tk208 million changing hands. The insurer's share closed at Tk 33.60 each, losing 1.75 per cent over the day.
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